[Limdep Nlogit List] Welfare Measures in the Nested Logit Model with Covariance heterogeneity
Mikołaj Czajkowski
miq at wne.uw.edu.pl
Sat Dec 20 09:39:10 EST 2008
Mikołaj Czajkowski wrote:
>
> Dear All,
>
> I am using the Nested Logit Model with Covariance Heterogeneity and I
> would like to estimate welfare measures.
> [...]
> My questions are as follows:
>
> 1. Could anyone verify if the formula is ok?
>
> I would also appreciate some suggestions on papers / books where I
> could see how to derive welfare measures for the nested logit model. I
> understand that the utility of each alternative is weighted by the
> probability of selecting it, but I can't seem to be able to derive it
> myself.
>
> 2. In case of the nested model with covariance heterogeneity - if I am
> interested in the mean CV, should I use individual-specific or sample
> mean values of attributes explaining inclusive value parameters?
>
> I have specified the CV formula using the WALD command, however I am
> not sure whether variables or their means should be used as covariates
> of inclusive value parameters. Both approaches seem to give different
> results.
>
> I would appreciate all the comments you might have. Thank you very
> much in advance.
My message got its attachment cut out so I've put the formula on the web
page as html:
http://coin.wne.uw.edu.pl/miq/cv-covhet.htm
or as pdf:
http://coin.wne.uw.edu.pl/miq/cv-covhet.pdf
Once again - thanks in advance for your comments.
--
Mikołaj Czajkowski
Warsaw Ecological Economics Center
University of Warsaw
http://www.woee.pl/
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